China factory activity shrinks again in May on COVID slowdown

Manufacturing purchasing managers' index rebounds slightly as restrictions ease

20220530 China factory

China's factory output has struggled as COVID-19 shutdowns weigh on activity in key manufacturing centers. © Reuters

CK TAN, Nikkei staff writer

SHANGHAI -- China's factory activity contracted again in May as a strict zero-COVID policy weighed on the economy, but a key manufacturing index rebounded slightly after major cities began easing tough virus restrictions.

The official manufacturing purchasing managers' index (PMI) ticked up to 49.6 points from 47.4 in April, but still remained below the 50-point line separating contraction from expansion.

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